MasterCard and global e-invoicing specialist Basware have launched Basware Pay, a solution aimed at working capital optimisation for the B2B space.
Basware Pay aims to extend the value of the purchase-to-pay process by providing a unique, global e-payment solution. The solution connects buyer and supplier payment processes through the Basware Commerce Network. Supplier invoices are sent via the Basware Commerce Network, approved by the buyer and once approved become available for payment through a virtual MasterCard account number.
The supplier receives an early payment while the buyer typically has extended payment terms. According to MasterCard and Basware, both parties benefit from richer settlement data and full process and payment visibility, leading to less chasing or being chased for payment.
Over half (57%) of international businesses surveyed by Basware and MasterCard admit to having actively delayed paying their suppliers in the past 12 months. The findings underscore a late payment culture, which three out of four businesses now consider normal practice, and that is hampering in particular small and medium-sized enterprises (SMEs).
“When three-quarters of businesses have more than 50 suppliers and about two-thirds send and receive more than 100 invoices a month, a culture of late payments impacts individual organisations as well as the economy as a whole,” said Esa Tihilä, CEO of Basware. “While a certain level of cash hoarding may be understandable given the financial climate, it also reflects inefficient processes and poor practices. Businesses have a responsibility to themselves and their supply chain to unlock value and keep money moving.”